The Nigerian government, through its Debt Management Office (DMO), has announced two new savings bonds designed to provide citizens with secure and rewarding investment opportunities. These bonds cater to individuals and institutions seeking tax-exempt, government-backed investments with attractive returns. The two-year bond comes with an interest rate of 17.23% annually and a maturity date of January 2027 while the three-year bond has an interest rate of 18.23% annually with a maturity date of January 2028.
Investors can subscribe to these bonds starting from January 13, 2025, to January 17, 2025, with the bond issuance set to commence on January 22, 2025. Interest payments will be made quarterly in April, July, October, and January.
Key Features of the Savings Bonds
- Tax Benefits: Exempt from both personal and corporate income taxes.
- Eligibility for Institutional Investors: Pension funds, trustees, and other institutional investors can participate.
- Affordable Entry: Bonds are priced at ₦1,000 each, with a minimum subscription of ₦5,000 and a maximum limit of ₦50 million.
- High Security: Backed by the Federal Government of Nigeria, these bonds are considered among the safest investment options available.
In a related development, the DMO previously announced three bonds worth ₦150 billion in September, demonstrating the government’s ongoing efforts to raise funds through secure investment channels while promoting financial inclusion and economic stability.
Some might be wondering why the need to invest, these savings bonds present a reliable investment opportunity, offering guaranteed returns and security. They are especially appealing for risk-averse individuals or entities seeking stable income streams and long-term financial planning.
